ITC has signed agreements to acquire Prasuma, a company in India's frozen, chilled, and ready-to-cook foods market. Prasuma specializes in products like momos, baos, Korean fried chicken, delicatessens, and raw meats, offering over 170 products.
ITC plans to acquire 100 percent of Prasuma over three years. The first tranche of 43.8 percent will be acquired upfront, and the remaining stake will be acquired in tranches by June 2028 based on valuation criteria.
This acquisition will strengthen ITC’s position in the frozen foods sector, which has a market size of over Rs. 10,000 crore and is expected to grow, the company said in the press release.
Prasuma operates under the brands ‘Prasuma’, ‘Meatigo by Prasuma’, and ‘Prasuma Momo Kitchen’. Its flagship product, ‘Prasuma Momos’, launched in 2019, has a leading position in the frozen momos category. The company also offers products such as Baos, Korean Fried Chicken, and Schezwan Momo meals.
Prasuma runs Meatigo, a direct-to-consumer platform for delicatessens and raw meats, and Prasuma Momo Kitchen, a cloud kitchen offering Pan-Asian food. It operates in over 100 cities and has an annual revenue run rate of Rs. 200 crore for the last three months.
ITC posted a 1 percent increase in standalone net profit, reaching Rs 5,638 crore for the quarter ending December 31, 2024, surpassing estimates. The growth was primarily driven by its agriculture, hotels, and cigarettes businesses, while its FMCG (fast-moving consumer goods) sector saw low single-digit growth due to a subdued demand environment. In the corresponding quarter of the previous year, ITC reported a net profit of Rs 5,572 crore.
On a consolidated basis, ITC's profit dropped 7 percent to Rs 5,013.2 crore, though revenue from operations increased to Rs 20,350 crore, up from Rs 18,880.4 crore year-on-year.
Stand-alone revenue for Q3FY25 reached Rs 18,290 crore, an 8 percent increase from Rs 16,864 crore in Q3FY24. Additionally, ITC declared an interim dividend of Rs 6.5 per equity share, as per a filing made on February 6.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
